UBS CIO: We Aren't Getting Involved With Bitcoin
UBS chief investment officer Mark Haefele says the world's largest money manager will not include bitcoin investments.
Financial services giant UBS has no plans to get involved with bitcoin or other cryptocurrencies, according to one of its senior executives.
In an interview with Bloomberg, UBS chief investment officer Mark Haefele said that a lack of government oversight and "critical mass" around cryptocurrencies is keeping the company – Switzerland's largest bank – out of the market.
Haefele also said that the idea the government could crack down on bitcoin, citing its possible use for terrorism financing, has also dampened any prospects of UBS getting involved.
He told Bloomberg:
Because bitcoin isn't sponsored or backed by any government, it can be used to avoid being monitored, he argued. However, Haefele added that he does not think this situation will last.
He went on to say that the prevailing question around investing in anything is when to get out, asking: "So how do you know when to get out of a bitcoin investment?"
Haefele is not the first UBS member to openly express concerns about bitcoin. The company's chief economist, Paul Donovan, compared bitcoin to the Netherlands' 1637 tulip mania in a series of tweets earlier this month.
And the chief executive of UBS, Sergio Ermotti, told CNBC last month that he he far more bullish on blockchain than he is about cryptocurrencies specifically.
UBS image via YouTube
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.